Recently, NVIDIA announced a major acquisition deal, purchasing the CEO and core team of AI hardware startup Enfabrica, along with the company's technology license, for over $900 million in cash and stock. This transaction marks NVIDIA's further expansion in the AI field, particularly in enhancing its GPU connectivity capabilities.
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Enfabrica was founded in 2019 and focuses on developing technology that can efficiently connect more than 100,000 GPUs. This core technology is believed to help NVIDIA build a more efficient integrated system, allowing large-scale computing clusters to operate like a single computer. It is well known that NVIDIA holds an important market share in the current AI wave, and its GPUs are widely used in data centers and provide strong technical support for cloud service providers' AI businesses.
Looking back at NVIDIA's investment history, in 2023, NVIDIA had participated in Enfabrica's $125 million Series B financing, helping the company's valuation increase five times compared to the Series A round. Last year, Enfabrica also received $115 million in funding from investors including AMD, Samsung, and Cisco, with a post-funding valuation of approximately $6 billion. These financings have laid the foundation for Enfabrica's development and attracted widespread attention in the industry.
NVIDIA is not the only company that has used high-value acquisitions to attract top AI talent. In June this year, Meta once acquired Alexandr Wang, the founder of Scale AI, and his team for $1.43 billion, holding 49% of the company's shares. Subsequently, Google also acquired Varun Mohan, CEO of Windsurf, and his team for $2.4 billion. It can be seen that in the current tech industry, companies enhancing their AI capabilities through acquisitions and talent poaching has become a trend.
Although NVIDIA has increased its investments in AI talent and technology in recent years, it is not known for large-scale mergers and acquisitions. The largest acquisition in the past occurred in 2019 when NVIDIA acquired Israeli chip design company Mellanox for $6.9 billion. Last year, NVIDIA also acquired Israeli Run:ai for $700 million, aiming to help software companies optimize AI infrastructure. In addition, NVIDIA recently announced an investment of $5 billion to join Intel and plans to collaborate with it to develop AI processors.
This series of acquisitions and investments indicates that NVIDIA is actively building its position in the AI field and striving to take the lead in future market competition.
Key points:
🌟 NVIDIA acquired the CEO and core team of AI startup Enfabrica, along with the company's technology license, for over $900 million.
💻 Enfabrica was founded in 2019 and focuses on technology that connects more than 100,000 GPUs, which helps improve NVIDIA's system efficiency.
🚀 NVIDIA's frequent investments and acquisitions show its ambition and strength in the AI market.
